Third quarter update
(Incorporated in the Republic of South Africa)
(Registration No 1955/002869/06)
Share Code: TRE
Holders of securities in Trencor are advised that Textainer Group Holdings Limited (NYSE: TGH), in which Trencor has a 48,41% (30 September 2012: 48,93%) beneficiary interest, has announced net profit attributable to its shareholders in US GAAP of US$137,3 million for the nine months ended 30 September 2013 compared with US$146,4 million for the same period in 2012. Textainer's results may be viewed on its website www.textainer.com.
Adjusted to conform with IFRS, Textainer's net profit for the nine months ended 30 September 2013 was US$142,0 million (same period in 2012: US$147,7 million).
Trencor's earnings for the nine months to 30 September 2013 are as follows:
|9 months ended
|Cents per share Unaudited||Cents per share Unaudited||Cents per share Audited|
Unrealised foreign exchange translation gains
|ADJUSTED HEADLINE EARNINGS||406,9||402,1||546,1|
|SA rand to US dollar:|
|- Period-end rate of exchange||R10,07||R8,21||R8,48|
|- Average rate of exchange for period||R9,51||R8,02||R8,16|
• Adjusted headline earnings exclude the effect of net unrealised foreign exchange gains arising on the translation of the long-term receivables and related valuation adjustment.
o Recorded a US$4,7 million impairment charge in the third quarter for containers expected to be economically unrecoverable from a limited group of small shipping lines that account for less than 0,5% of the fleet, and a US$4,3 million bad debt expense for a customer that filed for bankruptcy;
o Average fleet utilisation was 94,7% for the nine months to 30 September of 2013 (same period in 2012: 97,4%);
o Acquired US$629 million of new and used containers in the first nine months of 2013;
o Fleet size increased by more than 7% in the nine months to 2 971 589 TEU of which the percentage of owned containers was 75%;
o Established a US$300 million asset-backed revolving credit facility and issued US$300,9 million asset-backed term notes. The company's average interest rate stands at 3,55% p.a. compared to 4,76% p.a. a year ago; o Declared a dividend of US$0,47 per share in respect of the third quarter.
The financial information on which this trading update is based has not been reviewed or reported on by Trencor's independent auditors.
On behalf of the Board
NI Jowell Chairman
6 November 2013
Rand Merchant Bank (A division of FirstRand Bank Limited)